Exhibit 99.1
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[SEMTECH LOGO]
NEWS RELEASE
SEMTECH UPDATES OUTLOOK; ANNOUNCES $50 MILLION STOCK BUYBACK
Outlook for Improved Gross Margin Unchanged
Board of Directors Authorizes a $50 Million Stock Buyback
1:30 p.m. PST
Thursday, January 4, 2001
NEWBURY PARK, CALIFORNIA, January 4, 2001 - SEMTECH CORPORATION (Nasdaq: SMTC)
today announced that it expects to achieve analysts' consensus earnings
estimates of 23 cents per share for the fourth quarter ending January 28, 2001.
Semtech is forecasting that fourth quarter revenue will be sequentially flat
compared with third quarter levels. Previously, the Company's sequential
revenue growth forecast was 7 to 9 percent for the fourth quarter. For all of
fiscal year 2001, revenue is now forecasted to grow 47 percent and net income is
expected to increase over 100 percent compared to the prior year.
Jack Poe, Chairman and Chief Executive Officer, commented, "Our backlog as
of the beginning of the quarter positioned the Company to meet our initial
revenue forecast, assuming normal historical turns were achieved. Since that
time, OEM customers, contract manufacturers and distributors have adjusted their
ordering patterns to reduce inventory levels. This combined with a temporary
slowdown in demand for certain communication equipment and personal computers,
will reduce our sequential revenue growth. We expect the inventory correction
will be completed during the first quarter. Revenue for the first quarter is
expected to be approximately flat compared with fourth quarter levels.
Sequential revenue growth should resume in the second quarter of fiscal year
2002."
Mr. Poe added, "Gross margin continues to expand. Introduction of new,
proprietary products out of our advanced communications, human interface devices
(HID) and ECL clock and logic product lines are being well received. We are
also starting to see the benefit of focusing our power management business unit
on portable and telecommunication applications. Based on the stream of new
products across all product lines and design wins from customers, we remain very
confident about the long-term growth of the Company."
Current Quarter Outlook
. Revenue for the fourth quarter ending January 28, 2001 is forecasted to be
flat with the third quarter.
. Gross margin for the fourth quarter is forecasted to increase approximately
110 basis points as compared to the third quarter.
. Operating expenses for the fourth quarter are expected to increase
approximately $200,000 as compared to the third quarter.
. Interest and other income is forecasted at approximately $3.0 million for
the fourth quarter.
. Diluted shares are forecasted at approximately 76.7 million for the fourth
quarter, prior to giving effect to any stock repurchases.
Next Fiscal Year Outlook
. For fiscal year 2002, which ends January 27, 2002, the Company expects
revenue growth of 25 to 30 percent and net income growth of 35 to 40
percent over fiscal 2001.
. The Company expects to achieve its intermediate goal of 60 percent gross
margins by the third quarter of fiscal year 2002, consistent with our
previous forecasts.
The Company expects to release fourth quarter and fiscal year 2001 results
on February 22, 2001.
Stock Buyback
Separately, Semtech announced a $50 million buyback program. Under the
buyback program, common stock and registered convertible subordinated notes may
be purchased from time to time through open market transactions. The extent to
which the Company repurchases its shares or notes and the timing of such
purchases will depend upon market conditions and other corporate considerations.
The program does not include specific price targets or timetables and may be
suspended at any time. Depending on financial and market conditions, the
program could be terminated prior to completion. The repurchase of common stock
and notes will be funded from available working capital. Shares of common stock
repurchased will be held in treasury or used in connection with stock option
programs.
About Semtech
Semtech Corporation is a leading supplier of power management, transient
protection, system management, high-performance and advanced communications
semiconductor products for portable and high-speed communications applications.
Safe Harbor Provision
Statements contained in this release that are not historical facts are
forward-looking statements as that term is defined in the Private Securities
Litigation Reform Act of 1995. Forward-looking statements, including
projections and forecasts for revenue and gross margin, involve risks and
uncertainties that could cause actual results to differ materially from those
projected. These risks and uncertainties include worldwide economic conditions,
the timing and duration of semiconductor market upturns or downturns, demand for
personal computers, cellular phones and automated test equipment, demand for
semiconductor devices in general, competitors' actions, relations with large
strategic customers and suppliers, manufacturing costs and yields, demand for
the Company's products in particular, and risks associated with the businesses
of major customers. Other factors that may cause actual results to differ from
the forward-looking statements contained in this press release and that may
affect the Company's prospects in general are described in the Company's filings
with the Securities and Exchange Commission. The Company undertakes no
obligation to update or revise forward-looking statements to reflect subsequent
events or changed assumptions or circumstances.
Investor Relations Contact
John Baumann, Treasurer, Telephone: 805-480-2010